Which of the Following Classifications Would Be the Most Relevant

question 114

Multiple Choice

Which of the following classifications would be the most relevant for the costs incurred to process orders?

• A) customer output unit-level cost
• B) customer batch-level cost
• C) customer-sustaining cost
• D) corporate-sustaining cost

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Definitions:

Pounds

A unit of mass or weight commonly used in the British imperial and United States customary systems.

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, multiplied by the quantity of materials used.

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.